Qantas/QAN/American airlines

Qantas has definitely been a stock we’ve been interested in, holding it in our higher return higher risk seeking absolute return portfolio. Revenge travel, cashed up older cohorts itching to travel, beaten up stock out of favour with negative headlines, it was a reasonable mix.

At the same time, when people tell me QAN is cheap because it trades on a high single digit PE, we do glance over to look at American Airlines as a comp, and note that it trades on 5x PE, and, it just  downgraded.

The accompanying headlines were similarly dramatic.

So, we are happy to close that one out. Worth noting that the AA downgrade seemed mostly due to competition, which is, admittedly, much less of an issue here.

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